I am in the process of going bankrupt and am completing the bankruptcy forms. How much does it cost to go bankrupt? How do I pay the fees and if I cannot afford them, can I get some help or get the fees waived? ”
The fees to go bankrupt are now £700 per person and must be paid to the courts at the time the bankruptcy forms are filed.
For some people this is a lot of cash to cough up at one time, especially when you are already struggling with bills and debts.
If you meet the court’s requirements, they can waive a portion of the costs, but this will still leave over £500 to be paid. The court form to see if you qualify for a reduction is ex160a.
One option if you know you are going bankrupt and you are working, is to stop making payments to your creditors for a couple of months and save up the fees to go bankrupt. Of course there is a learning curve with this as your creditors will begin phoning you and sending collection notices, which can be uncomfortable. But it is an option. You can inform your creditors you are going to go bankrupt, but until you are actually made bankrupt, they can still contact you and try to collect the debt.
For some people they may qualify for assistance for the bankruptcy fees by getting a grant through some of the local utility providers. Some gas or electric companies have grant funds available to help those in need, and one of those needs they can provide money for is for the fees to go bankrupt.
You will need to contact the utility companies directly to inquire about this.
You may have to search around some of the sites to find the application and/or phone them to inquire as to the specific requirements in order to qualify for the grant funds.
Let me know how you get on.
Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.
If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.